STATE EX REL. MIRBEAU OF GENEVA LAKE, LLC v. City of Lake Geneva

746 F. Supp. 2d 1000, 2010 U.S. Dist. LEXIS 115814, 2010 WL 4260085
CourtDistrict Court, E.D. Wisconsin
DecidedOctober 27, 2010
DocketCase 08-CV-693
StatusPublished
Cited by11 cases

This text of 746 F. Supp. 2d 1000 (STATE EX REL. MIRBEAU OF GENEVA LAKE, LLC v. City of Lake Geneva) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
STATE EX REL. MIRBEAU OF GENEVA LAKE, LLC v. City of Lake Geneva, 746 F. Supp. 2d 1000, 2010 U.S. Dist. LEXIS 115814, 2010 WL 4260085 (E.D. Wis. 2010).

Opinion

ORDER

J.P. STADTMUELLER, District Judge.

On July 1, 2010, the plaintiff, Mirbeau of Geneva Lake LLC (“Mirbeau”), filed its Second Amended Complaint that, in relevant part, added defendants (collectively “non-city defendants”) Lower Density Development, LLC, (“LDD”), Thomas Muenster (“Muenster”), James Connors (“Connors”), and Richard Malmin (“Malmin”) as parties to the action. (Docket # 77). A bevy of motions soon followed. On August 5, 2010, the plaintiff filed a motion for default judgment against Mr. Malmin. (Docket # 91). The following day, LDD and Mr. Muenster filed a motion to dismiss the complaint. (Docket # 96). Within the hour, two additional motions were filed. Mr. Malmin filed a motion to set aside the default judgment (Docket # 100), and Mr. Connors filed a motion to dismiss the complaint. (Docket # 101). On August 27, 2010, the plaintiff filed a response to the three motions filed on August 5, 2010 (Docket #’s 115, 116, 118), and also filed a motion for leave to file the Third Amended Complaint to repair infirmities with the Second Amended Complaint. (Docket # 119). Less than a month later, the plaintiff filed a motion for leave to file a “sur-response” brief in opposition to the motions to dismiss. (Docket # 127). On October 20, 2010, the plaintiff filed an expedited motion to strike a supplemental response to the motion to dismiss by Messrs. Connors and Malmin. (Docket # 135). In response to the plaintiffs motion to strike, defendants Connors and Malmin submitted a motion to file supplemental authority on October 22, 2010. (Docket # 136). As promised in this court’s August 10, 2010 order (Docket # 111), the court, in this order, will now resolve the various motions pending on this case’s docket such that this action can get back on track. The court begins by addressing the motions to dismiss. 1

MOTIONS TO DISMISS

As this court has noted in its previous orders, this case arises from Mirbeau’s *1004 failed attempts to persuade the City of Lake Geneva to change the zoning classification for 54.5 acres of land such that the plaintiff could develop the area into a commercial and residential area with a hotel, residential cottages, a winery, and neighborhood retail. (Sec. Am. Compl. ¶¶ 21-22). The latest allegations note that the approval of the zoning change within a year of April 23, 2007, was a condition necessary to effectuate a sale of the 54.5 acres from Geneva Ridge Joint Venture (“Geneva Ridge”) to Mirbeau. Id. ¶ 23. The Second Amended Complaint, much like its previous version, generally alleges that the City and members of the City’s council 2 (collectively the “city defendants” 3 ), in rejecting Mirbeau’s application for a zoning change permit to develop the property in question, conspired in a series of backroom deals to treat the plaintiff differently from other similarly situated applicants without any rational basis, resulting in a denial of equal protection of the law for Mirbeau as guaranteed by the Fourteenth Amendment to the United States Constitution. Id. ¶¶ 34-35; 72-75. The Second Amended Complaint also alleges several new, related federal and state constitutional infirmities with the city defendants’ actions. Mirbeau claims that the city defendants retaliated against the plaintiff for its “exercise of its constitutional right to petition,” in violation of the First Amendment as applied to the states through the Fourteenth Amendment. Id. ¶¶ 76-78. The plaintiff also contends that the city defendants, in denying Mirbeau’s zoning amendment application, violated Mirbeau’s procedural and substantive due process rights as protected by the Constitution of the State of Wisconsin. Id. ¶¶ 79-84. Additionally, the Second Amended complaint alleges that the city defendants violated the Wisconsin Open Records Law, Wis. Stat. § 19.35, and the Wisconsin Open Meetings Law, Wis. Stat. §§ 19.83 and 19.84. Id. ¶¶ 85-105.

Most relevant to the present motions to dismiss, the Second Amended Complaint alleges two central claims against LDD and Messrs. Muenster, Connors, and Malmin. Before delving into those claims, however, it is important for the court to note who the newest parties to this dispute are. LDD is a Delaware limited liability company that attempted to purchase the same plot of land that Mirbeau was expecting to develop. (Sec. Am. Compl. ¶¶ 14; 44). Mr. Muenster, a resident of South Dakota, “is the manager of LDD.” Id. ¶ 15. Mr. Connors is the current Mayor of Lake Geneva and, according to the latest complaint, at the time of the events driving the legal claims alleged against him, was the “founder and treasurer of Vote-No Mir-beau-Hummel,” (“Vote-No”), a political action subcommittee formed to oppose Mirbeau’s zoning amendment application. Id. ¶¶ 16,132. Mr. Malmin is a resident of Lake Geneva and was an “active” member *1005 of “Friends of Geneva Lake, Inc.” (“FOGL”), a “Wisconsin political action committee opposed to development of the property” by Mirbeau. Id. ¶¶ 17, 53, 120, 126.

In its eighth claim for relief, 4 Mirbeau generally alleges that the non-city defendants and two of the city defendants tortiously interfered with Mirbeau’s contract to purchase the 54.5 acres of land from Geneva Ridge. Id. ¶¶ 116-158. Specifically, Mirbeau contends that LDD “intentionally interfered with” the plaintiffs contract and “delayed the Mirbeau Zoning Amendment Application review process” in order to “drive down the value” of the property in question, such that LDD could “acquire title at less than market price.” Id. ¶¶ 117-120. The plaintiff alleges that LDD’s tortious interference began when Mr. Muenster, as LDD’s manager, communicated with the remaining defendants that LDD would “wait to develop the property and would develop it less densely than [Mirbeau’s] development plans.” Id. ¶ 121. Mirbeau further states that Mr. Muenster began working “behind the scenes” with “representatives of FOGL,” including Malmin, Connors, and now-city councilwoman and then-candidate for city council Penny Roehrer, “formulatpng] and pursuing] a strategy of ongoing and improper tactics,” including having a public referendum on the zoning change, “to delay review and approval of [the plaintiffs] Zoning Amendment Application for the purpose of preventing Mirbeau from consummating its Purchase Contract.” Id. ¶¶ 120, 125-27, 136. Roehrer, in turn, “regularly communicat[ed]” with Mary Jo Fesenmaier, a member of the City’s council, “in an effort to obtain inside information concerning the City council’s handling of Mirbeau’s pending Zoning Amendment Application.” Id. ¶ 129. Throughout the process, LDD allegedly “made promises and representations to Roehrer, Malmin, Connors, Fesenmaier, other members of FOGL, and to the public that LDD’s development plans for the property,” such as possibly donating a portion of the property to a conservation group, “would be much more desirable and acceptable than those of Mirbeau.” Id. ¶¶ 130, 143.

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Bluebook (online)
746 F. Supp. 2d 1000, 2010 U.S. Dist. LEXIS 115814, 2010 WL 4260085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-mirbeau-of-geneva-lake-llc-v-city-of-lake-geneva-wied-2010.